SunGard Capital Corp. and SunGard Capital Corp. II Management Time-Based Restricted Stock Unit Agreement THIS AWARD AND ANY SECURITIES ISSUED UPON THE PAYMENT OF THIS RESTRICTED STOCK UNIT AWARD ARE SUBJECT TO RESTRICTIONS ON VOTING AND TRANSFER AND...
Exhibit 10.4
| Name: | ||
| Number of Stock Units: | ||
| Date of Grant: |
SunGard Capital Corp. and SunGard Capital Corp. II
THIS AWARD AND ANY SECURITIES ISSUED UPON THE PAYMENT OF THIS RESTRICTED STOCK
UNIT AWARD ARE SUBJECT TO RESTRICTIONS ON VOTING AND TRANSFER AND REQUIREMENTS
OF SALE AND OTHER PROVISIONS AS SET FORTH IN THE STOCKHOLDERS AGREEMENT AMONG
SUNGARD CAPITAL CORP., SUNGARD CAPITAL CORP. II, SUNGARD HOLDING CORP., SOLAR
CAPITAL CORP. AND CERTAIN STOCKHOLDERS OF SUNGARD CAPITAL CORP. AND
SUNGARD CAPITAL CORP. II, DATED AS OF AUGUST 10, 2005 (AS IN EFFECT FROM TIME
TO TIME, THE “STOCKHOLDERS AGREEMENT”).
SUNGARD CAPITAL CORP. AND SUNGARD CAPITAL CORP. II STRONGLY ENCOURAGE YOU TO SEEK THE ADVICE OF
YOUR OWN LEGAL AND FINANCIAL ADVISORS WITH RESPECT TO YOUR AWARD AND ITS TAX CONSEQUENCES.
This agreement (the “Agreement”) evidences Restricted Stock Units granted by SunGard
Capital Corp., a Delaware corporation (the “Company”), and SunGard Capital Corp. II, a
Delaware corporation (“Lowerco” and together with the Company, the “Companies”), to
the undersigned (the “Grantee”), pursuant to, and subject to the terms of, the SunGard 2005
Management Incentive Plan (as amended from time to time, the “Plan”) which is incorporated
herein by reference and of which the Grantee hereby acknowledges receipt.
1. Grant of Restricted Stock Units. The Company and Lowerco (as applicable) grant to
the Grantee, as of the above Date of Grant, Restricted Stock Units for the number of Stock Units
stated above (the “Stock Units”), on the terms provided herein and in the Plan. The Stock
Units represent a conditional right to receive Units (as defined below) consisting of Class A
Common shares, Class L Common shares and Lowerco Preferred shares (the “Shares”). The
Stock Units evidenced by this Agreement are granted to the Grantee in an Employment capacity as an
Employee.
2. Stock Unit Account. The Company shall establish and maintain a Stock Unit account
(the “Account”) as a bookkeeping account on its records for the Grantee and shall record in
the Account the number of Stock Units awarded to the Grantee. No Shares shall be issued to the
Grantee at the time the Award is made, and the Grantee shall not be, nor have any of the rights or
privileges of, a stockholder of the Companies with respect to any Stock Units recorded in the
Account or amounts credited to the Account pursuant to Section 8. The Grantee shall not have any
interest in any fund or specific assets of the Companies by reason of this Award or the Account
established for the Grantee.
May 2010 Form US
3. Meaning of Certain Terms. Except as otherwise defined herein, all capitalized
terms used in this Agreement shall have the same meaning as in the Plan. The terms “Change of
Control,” “Disability” and “Fair Market Value” shall have the same meaning as
set forth in the Stockholders Agreement and without regard to any subsequent amendment thereof.
The following terms shall have the following meanings:
| (a) | “Adjustment Event” means (i) a cash distribution with respect to Shares paid to all or substantially all holders of Shares, other than cash dividends in respect of Shares declared by the Board as part of a regular dividend payment practice or stated cash dividend policy of the Company following an IPO, or (ii) a substantially pro rata redemption or substantially pro rata repurchase (in each case, as applicable, by the Company, Lowerco or any of their subsidiaries) of all or part of any class of Shares; |
| (b) | “Date of Termination” means the date that the termination of the Grantee’s Employment with Employer is effective on account of the Grantee’s death, the Grantee’s Disability, termination by Employer for Cause or without Cause, or by the Grantee, as the case may be; |
| (c) | “Employer” means the Company or, as the case may be, its Affiliate with whom the Grantee has entered into an Employment relationship; |
| (d) | “Restrictive Covenant” means any of the restrictive covenants set forth in Exhibit A, which is incorporated herein by reference; and |
| (e) | “Unit” means an undivided interest in 1.3 Class A shares, 0.1444 Class L shares and 0.05 Lowerco Preferred shares, determined at the Date of Grant, as it may be adjusted as provided herein. |
As used herein with respect to the Stock Units, the term “vest” means that the restrictions on
the right to receive payment pursuant to the Stock Units lapse in whole or in specified part.
4. Vesting of Stock Units. The Stock Units shall be subject to forfeiture until the
Stock Units vest. The Stock Units shall vest, in accordance with Schedule A, based on the
Grantee’s continued Employment; provided, however, that:
| (a) | upon the Grantee’s Employment being terminated involuntarily within six months following a Change of Control other than for Cause, the Stock Units shall become fully vested; |
| (b) | if the Grantee’s Employment terminates without or prior to a Change of Control as a result of (i) termination of the Grantee by Employer without Cause, (ii) resignation by the Grantee or (iii) the Grantee’s Disability or death, then the Stock Units shall immediately stop vesting, and any unvested Stock Units shall be forfeited as of the Date of Termination; and |
| (c) | if the Grantee’s Employment terminates as a result of termination by Employer for Cause, then the Stock Units will be immediately forfeited by the Grantee and terminate as of the Date of Termination. |
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5. Payment of Stock Units. The Grantee’s vested Stock Units shall be paid in Shares
upon the first to occur of (i) a Change of Control that meets the requirements of a “change in
control event” under Section 409A of the Code, (ii) the Grantee’s separation from service without
Cause, or (iii) the date that is five years after the Date of Grant. If a Change of Control occurs
before the Stock Units are fully vested, any Stock Units that subsequently vest shall be paid upon
the first to occur of (i) the Grantee’s separation from service without Cause or (ii) the date that
is five years after the Date of Grant. Notwithstanding the foregoing, a distribution of Shares
under this Agreement upon separation from service shall only be made upon the Grantee’s “separation
from service” within the meaning of Section 409A of the Code, and all distributions shall be made
at a time and in a manner consistent with Section 409A. When the vested Stock Units become
payable, the Companies will issue to the Grantee Shares representing the Units underlying the
vested Stock Units, subject to satisfaction of the Grantee’s tax withholding obligations as
described below, within 30 business days after the payment event.
6. Certain Calls and Puts. The Stock Units granted hereunder and the related Shares
are subject to the call and put rights contained in Section 6 of the Stockholders Agreement, except
that such put rights shall be granted only if and to the extent permitted by the Code (including
Section 409A thereof); provided, however, that the call rights contained in Section 6 of the
Stockholders Agreement shall not apply in the event of a termination resulting from Disability or
death.
7. Share Restrictions, etc. Except as expressly provided herein, the Grantee’s rights
hereunder and with respect to Shares received upon payment in accordance with Section 5 herein are
subject to the restrictions and other provisions contained in the Stockholders Agreement.
8. Distributions, Redemptions, etc.
| (a) | Upon the occurrence of an Adjustment Event, there shall be credited to the Account an amount equal to the product of (i) the per-Share amount paid with respect to Shares underlying the Stock Unit in connection with the Adjustment Event, multiplied by (ii) the number of Shares of the class of stock affected by the Adjustment Event that are included in each Unit immediately prior to the Adjustment Event, multiplied by (iii) the number of Units underlying the Grantee’s Stock Units pursuant to this Award. |
| (b) | If any other cash dividend or distribution is paid with respect to Shares underlying the Stock Units, there shall be credited to the Account an amount equal to the product of (i) the per-Share amount paid with respect to Shares underlying the Stock Units, multiplied by (ii) the number of Shares of the applicable class of stock that are included in each Unit, multiplied by (iii) the number of Units underlying the Grantee’s Stock Units pursuant to this Award. |
| (c) | The amount credited to the Account pursuant to this Section 8 with respect to Stock Units is referred to as the “Bonus Value.” The Bonus Value shall vest on the same terms as the Stock Units to which it relates, as set forth in this Agreement, and the vested Bonus Value shall be paid to the Grantee at the same time as the vested Stock Units are paid pursuant to Section 5 herein, consistent with Section 409A of the Code. |
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| (d) | In the case of a redemption or repurchase of Shares, the number of Shares of the class of stock redeemed or repurchased that are subject to outstanding Stock Units will be automatically reduced by an amount proportionate to the percentage reduction in outstanding Shares of the affected class resulting from the redemption or repurchase. The Grantee shall be entitled to receive any information reasonably requested regarding the composition of a Unit, as adjusted in accordance with this Section 8. |
9. Forfeiture. Upon delivery of Shares pursuant to the Stock Units, the Grantee shall
certify on a form acceptable to the Committee that the Grantee is in compliance with the
Restrictive Covenants and all other agreements between the Grantee and the Company or any of its
Affiliates. If the Company determines that the Grantee is not in compliance with one or more of
the Restrictive Covenants or with the provisions of any agreement between the Grantee and the
Company or any of its Affiliates, and such non-compliance has not been authorized in advance in a
specific written waiver from the Company or the applicable party, the Committee may cancel any
unpaid Stock Units. The Company shall also have the following (and only the following) additional
remedies:
| (a) | During the six months after any delivery of Shares pursuant to the Stock Units, such delivery may be rescinded at the Company’s option if the Grantee fails to comply in any material respect with the terms of the Restrictive Covenants or of any other agreement with the Company or any of its affiliates or if the Grantee breaches any duty to the Company or any of its Affiliates. The Company shall notify the Grantee in writing of any such rescission within one year after such delivery. Within ten days after receiving such a notice from the Company, the Grantee shall remit or deliver to the Company (i) the amount of any gain realized upon the sale of any Shares, (ii) any consideration received upon the exchange of any Shares (or to the extent that such consideration was not received in the form of cash, the cash equivalent thereof valued at the time of the exchange), and (iii) the number of Shares received in connection with the rescinded delivery. |
| (b) | The Company shall have the right to offset, against any Shares and any cash amounts due to the Grantee under or by reason of the Grantee’s holding the Stock Units, any amounts to which the Company is entitled as a result of the Grantee’s violation of the terms of the Restrictive Covenants or of any other agreement with the Company or any of its affiliates or the Grantee’s breach of any duty to the Company or any of its Affiliates; provided, however, that no offset shall accelerate or defer the distribution date of amounts payable under this Agreement in violation of Section 409A of the Code, and any offset in violation of Section 409A shall be null and void. Accordingly, the Grantee acknowledges that (i) the Company may withhold delivery of Shares, (ii) the Company may place the proceeds of any sale or other disposition of Shares in an escrow account of the Company’s choosing pending resolution of any dispute with the Company, and (iii) the Company has no liability for any attendant market risk caused by any such withholding, or escrow, subject, however, to compliance with the requirements of Section 409A of the Code. |
The Grantee acknowledges and agrees that the calculation of damages from a breach of any of the
Restrictive Covenants or of any other agreement with the Company or any of its Affiliates or
of any duty to the Company or any of its Affiliates would be difficult to calculate accurately and
that the right to offset or other remedy provided for herein is reasonable and not a penalty. The
Grantee further agrees not to challenge the reasonableness of such provisions even where the
Company rescinds, delays, withholds or escrows Shares or proceeds or uses those Shares or proceeds
as a setoff.
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10. Legends, etc. Shares issued upon the lapse of any restrictions on the Stock Units
shall bear such legends as may be required or provided for under the terms of the Stockholders
Agreement.
11. Transfer of Stock Units. The Stock Units may only be transferred by the laws of
descent and distribution, or to a legal representative in the event of the Grantee’s incapacity.
12. Withholding. The payment of the Shares and other amounts in accordance with this
Agreement will give rise to “wages” or other compensation income subject to withholding. The
Grantee expressly acknowledges and agrees that the Grantee’s rights hereunder, including the right
to be issued Shares in accordance with Section 5 herein and cash paid in accordance with Section 8
hereof, are subject to the Grantee promptly paying to the Companies in cash or by Share withholding
as described below (or by such other means as may be acceptable to the Administrator in its
discretion) all taxes required to be withheld. The Grantee also authorizes the Companies and their
subsidiaries to withhold such amount from any amounts otherwise owed to the Grantee. Unless the
Grantee elects otherwise in a time and manner specified by the Company, any tax withholding
obligation with respect to the payment of Shares shall be satisfied by having Shares withheld up to
an amount that does not exceed the minimum applicable withholding tax rate for federal (including
FICA), state, and local tax liabilities.
13. Grant Subject to Plan Provisions. This Award is made pursuant to the Plan, the
terms of which are incorporated herein by reference, and in all respects shall be interpreted in
accordance with the Plan. The Award and payment of the Stock Units are subject to interpretations,
regulations and determinations concerning the Plan established from time to time by the
Administrator in accordance with the provisions of the Plan, including, but not limited to,
provisions pertaining to (i) the registration, qualification or listing of the shares issued under
the Plan, (ii) changes in capitalization and (iii) other requirements of applicable law. The
Administrator shall have the authority to interpret and construe the Stock Units pursuant to the
terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.
14. Effect on Employment. Neither the grant of the Stock Units, nor the issuance of
Shares or other payments in accordance with this Agreement, shall give the Grantee any right to be
retained in the employ of the Company, Lowerco or any of their Affiliates, affect the right of the
Company, Lowerco or any of their Affiliates to discharge or discipline the Grantee at any time, or
affect any right of the Grantee to terminate his or her Employment at any time.
15. Delay in Payments for Specified Employees. Notwithstanding anything in this
Agreement to the contrary, if the Grantee is a “specified employee” of a publicly traded
corporation under Section 409A of the Code at the time of separation from service and if payment of
any amount under this Agreement is required to be delayed for a period of six months after the
separation from service pursuant to Section 409A of the Code, payment of such amount shall be
delayed as required by Section 409A of the Code, and the accumulated postponed amount shall be paid
in a lump sum payment within 10 days after the end of the six-month period. If the Grantee dies during the postponement period prior to the payment of
postponed amount, the accumulated postponed amount shall be paid to the personal representative of
the Grantee’s estate within 60 days after the date of the Grantee’s death.
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16. Section 409A. It is intended that the Stock Units awarded hereunder shall comply
with the requirements of Section 409A of the Code (and any regulations and guidelines issued
thereunder), and this Agreement shall be interpreted on a basis consistent with such intent.
Payments shall only be made on an event and in a manner permitted by Section 409A of the Code.
Each payment under this Agreement is considered a separate payment for purposes of Section 409A of
the Code. As provided under Section 409A, if calculation of the amount of a payment is not
administratively practicable due to events beyond the control of the Grantee, the payment will be
treated as made upon the date specified hereunder if the payment is made during the first calendar
year in which calculation of the amount of the payment is administratively practicable. This
Agreement may be amended without the consent of the Grantee in any respect deemed by the Committee
to be necessary in order to preserve compliance with Section 409A of the Code.
17. Governing Law. This Agreement and all claims arising out of or based upon this
Agreement or relating to the subject matter hereof shall be governed by and construed in accordance
with the domestic substantive laws of the State of Delaware without giving effect to any choice or
conflict of laws provision or rule that would cause the application of the domestic substantive
laws of any other jurisdiction.
18. Amendment. In addition to the authority to make adjustments pursuant to Section
7(b) of the Plan, the Administrator may modify the terms of the Award as the Administrator deems
appropriate, in good faith, to take account of a change in circumstances occasioned by a stock
dividend or other similar distribution (whether in the form of stock, other securities or other
property), stock split or combination of shares (including a reverse stock split),
recapitalization, conversion, reorganization, consolidation, split-up, spin-off, combination,
merger, exchange of stock, redemption or repurchase of all or part of the shares of any class of
stock or any change in the capital structure of the Company or an Affiliate or other transaction or
event, including the power to adjust the performance goals that are affected by such a
transaction.
[SIGNATURE PAGE FOLLOWS]
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By acceptance of the Stock Units, the undersigned agrees hereby to become a party to, and be
bound by the terms of, the Stockholders Agreement as a “Manager” as defined therein.
Executed as of the Date of Xxxxx.
| SunGard Capital Corp. and | SUNGARD CAPITAL CORP. | |||||
| SunGard Capital Corp. II | SUNGARD CAPITAL CORP. II | |||||
| By: | ||||||
Grantee
I acknowledge that I have received a copy of this Agreement and certain related information,
and that I have read and understood these documents. I accept and agree to all of the provisions
of this Agreement.
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Schedule A
Vesting Schedule
Vesting Schedule
10% of the Stock Units shall vest on the first anniversary of the Date of Grant (“Initial
Vesting Date”); and
The remaining 90% of the Stock Units shall vest in equal monthly installments over the 48 months
following the Initial Vesting Date starting with the first monthly anniversary of the Initial
Vesting Date.
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Exhibit A
Restrictive Covenants
Restrictive Covenants
1. The Grantee will not render services for any organization or engage directly or indirectly
in any business which, in the judgment and sole determination of the Chief Executive Officer of the
Company or another senior officer designated by the Committee, is or becomes competitive with the
Company, or which organization or business, or the rendering of services to such organization or
business, is or becomes otherwise prejudicial to or in conflict with the interests of the Company.
If the Grantee’s employment or other service with the Company has terminated, the judgment of the
Chief Executive Officer or other designated officer will be based on the Grantee’s position and
responsibilities while employed by the Company, the Grantee’s post-employment responsibilities and
position with the other organization or business, the extent of past, current and potential
competition or conflict between the Company and the other organization or business, the effect on
the Company’s customers, suppliers, employees and competitors of the Xxxxxxx’s assuming the
post-employment position and such other considerations as are deemed relevant given the applicable
facts and circumstances.
2. The Grantee will not disclose to anyone outside the Company, or use other than in the
Company’s business, any confidential or proprietary information or material relating to the
business of the Company, acquired by the Grantee either during or after employment with the
Company. The Grantee understands that the Company’s proprietary and confidential information
includes, by way of example: (a) the identity of customers and prospects, their specific
requirements, and the names, addresses and telephone numbers of individual contacts; (b) prices,
renewal dates and other detailed terms of customer and supplier contracts and proposals; (c)
pricing policies, information about costs, profits and sales, methods of delivering software and
services, marketing and sales strategies, and software and service development strategies; (d)
source code, object code, specifications, user manuals, technical manuals and other documentation
for software products; (e) screen designs, report designs and other designs, concepts and visual
expressions for software products; (f) employment and payroll records; (g) forecasts, budgets,
acquisition models and other non-public financial information; and (h) expansion plans, business or
development plans, management policies, information about possible acquisitions or divestitures,
potential new products, markets or market extensions, and other business and acquisition strategies
and policies.
3. The Grantee will promptly communicate to the Company, in writing, all marketing strategies,
product ideas, software designs and concepts, software enhancement and improvement ideas, and other
ideas and inventions (collectively, “works and ideas”) pertaining to the Company’s business,
whether or not patentable or copyrightable, that are made, written, developed, or conceived by the
Grantee, alone or with others, at any time (during or after business hours) while the Grantee is
employed by the Company or during the three months after the Grantee’s employment terminates. The
Grantee understands that all of those works and ideas will be the Company’s exclusive property, and
by accepting the Stock Units the Grantee assigns and agrees to assign all the Grantee’s right,
title and interest in those works and ideas to the Company. The Grantee will sign all documents
which the Company deems necessary to confirm its ownership of those works and ideas, and the
Grantee will cooperate fully with the Company to allow the Company to take full advantage of those
works and ideas, including the securing of patent and/or copyright protection and/or other similar
rights in the United States and in foreign countries.
4. The Grantee will not solicit or contact at any time, directly or through others, for the
purpose or with the effect of competing or interfering with or harming any part of the Company’s
business: (a) any customer or acquisition target under contract with the Company at any time
during the last two years of the Grantee’s employment with the Company; (b) any prospective
customer or acquisition target that received or requested a proposal, offer or letter of intent
from the Company at any time during the last two years of the Grantee’s employment with the
Company; (c) any affiliate of any such customer or prospect; (d) any of the individual contacts
established by the Company or the Grantee
or others at the Company during the period of the Grantee’s employment with the Company; or
(e) any individual who is an employee or independent contractor of the Company at the time of the
solicitation or contact or who has been an employee or independent contractor within three months
before such solicitation or contact.
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| Name: Template | ||
| Number of Stock Units: Template | ||
| Date of Grant: |
SunGard Capital Corp. and SunGard Capital Corp. II
THIS AWARD AND ANY SECURITIES ISSUED UPON THE PAYMENT OF THIS RESTRICTED STOCK
UNIT AWARD ARE SUBJECT TO RESTRICTIONS ON VOTING AND TRANSFER AND REQUIREMENTS
OF SALE AND OTHER PROVISIONS AS SET FORTH IN THE STOCKHOLDERS AGREEMENT AMONG
SUNGARD CAPITAL CORP., SUNGARD CAPITAL CORP. II, SUNGARD HOLDING CORP., SOLAR
CAPITAL CORP. AND CERTAIN STOCKHOLDERS OF SUNGARD CAPITAL CORP. AND SUNGARD
CAPITAL CORP. II, DATED AS OF AUGUST 10, 2005 (AS IN EFFECT FROM TIME TO TIME, THE
“STOCKHOLDERS AGREEMENT”).
UNIT AWARD ARE SUBJECT TO RESTRICTIONS ON VOTING AND TRANSFER AND REQUIREMENTS
OF SALE AND OTHER PROVISIONS AS SET FORTH IN THE STOCKHOLDERS AGREEMENT AMONG
SUNGARD CAPITAL CORP., SUNGARD CAPITAL CORP. II, SUNGARD HOLDING CORP., SOLAR
CAPITAL CORP. AND CERTAIN STOCKHOLDERS OF SUNGARD CAPITAL CORP. AND SUNGARD
CAPITAL CORP. II, DATED AS OF AUGUST 10, 2005 (AS IN EFFECT FROM TIME TO TIME, THE
“STOCKHOLDERS AGREEMENT”).
SUNGARD CAPITAL CORP. AND SUNGARD CAPITAL CORP. II STRONGLY ENCOURAGE YOU TO
SEEK THE ADVICE OF YOUR OWN LEGAL AND FINANCIAL ADVISORS WITH RESPECT TO YOUR
AWARD AND ITS TAX CONSEQUENCES.
SEEK THE ADVICE OF YOUR OWN LEGAL AND FINANCIAL ADVISORS WITH RESPECT TO YOUR
AWARD AND ITS TAX CONSEQUENCES.
This agreement (the “Agreement”) evidences Restricted Stock Units granted by SunGard
Capital Corp., a Delaware corporation (the “Company”), and SunGard Capital Corp. II, a
Delaware corporation (“Lowerco” and together with the Company, the “Companies”), to
the undersigned (the “Grantee”), pursuant to, and subject to the terms of, the SunGard 2005
Management Incentive Plan (as amended from time to time, the “Plan”) which is incorporated
herein by reference and of which the Grantee hereby acknowledges receipt.
1. Grant of Restricted Stock Units. The Company and Lowerco (as applicable) grant to
the Grantee, as of the above Date of Grant, Restricted Stock Units for the number of Stock Units
stated above (the “Stock Units”), on the terms provided herein and in the Plan. The Stock
Units represent a conditional right to receive Units (as defined below) consisting of Class A
Common shares, Class L Common shares and Lowerco Preferred shares (the “Shares”). The
Stock Units evidenced by this Agreement are granted to the Grantee in an Employment capacity as an
Employee.
2. Stock Unit Account. The Company shall establish and maintain a Stock Unit account
(the “Account”) as a bookkeeping account on its records for the Grantee and shall record in
the Account the number of Stock Units awarded to the Grantee. No Shares shall be issued to the
Grantee at the time the Award is made, and the Grantee shall not be, nor have any of the rights or
privileges of, a shareholder of the Companies with respect to any Stock Units recorded in the
Account or amounts credited to the Account pursuant to Section 8. The Grantee shall not have any
interest in any fund or specific assets of the Companies by reason of this Award or the Account
established for the Grantee.
May 2010 Form International
3. Meaning of Certain Terms. Except as otherwise defined herein, all capitalized
terms used in this Agreement shall have the same meaning as in the Plan. The terms “Change of
Control,” “Disability” and “Fair Market Value” shall have the same meaning as
set forth in the Stockholders Agreement and without regard to any subsequent amendment thereof.
The following terms shall have the following meanings:
| (a) | “Adjustment Event” means (i) a cash distribution with respect to Shares paid to all or substantially all holders of Shares, other than cash dividends in respect of Shares declared by the Board as part of a regular dividend payment practice or stated cash dividend policy of the Company following an IPO, or (ii) a substantially pro rata redemption or substantially pro rata repurchase (in each case, as applicable, by the Company, Lowerco or any of their subsidiaries) of all or part of any class of Shares; |
| (b) | “Date of Termination” means the date that the termination of the Grantee’s Employment with Employer is effective on account of the Grantee’s death, the Grantee’s Disability, termination by Employer for Cause or without Cause, or by the Grantee, as the case may be; |
| (c) | “Employer” means the Company or, as the case may be, its Affiliate with whom the Grantee has entered into an Employment relationship; |
| (d) | “Restrictive Covenant” means any of the restrictive covenants set forth in Exhibit A, which is incorporated herein by reference; |
| (e) | “Tax” or “Taxes” means any income tax, social insurance, payroll tax, contributions, payment on account obligations or other payments; |
| (f) | “Unit” means an undivided interest in 1.3 Class A shares, 0.1444 Class L shares and 0.05 Lowerco Preferred shares, determined at the Date of Grant, as it may be adjusted as provided herein; and |
As used herein with respect to the Stock Units, the term “vest” means that the
restrictions on the right to receive payment pursuant to the Stock Units lapse in whole or in
specified part.
4. Vesting of Stock Units. The Stock Units shall be subject to forfeiture until the
Stock Units vest. The Stock Units shall vest, in accordance with Schedule A, based on the
Grantee’s continued Employment; provided, however, that:
| (a) | upon the Grantee’s Employment being terminated involuntarily within six months following a Change of Control other than for Cause, the Stock Units shall become fully vested; |
| (b) | if the Grantee’s Employment terminates without or prior to a Change of Control as a result of (i) termination of the Grantee by Employer without Cause, (ii) resignation by the Grantee or (iii) the Grantee’s Disability or death, then the Stock Units shall immediately stop vesting, and any unvested Stock Units shall be forfeited as of the Date of Termination; and |
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| (c) | if the Grantee’s Employment terminates as a result of termination by Employer for Cause, then the Stock Units will be immediately forfeited by the Grantee and terminate as of the Date of Termination. |
5. Payment of Stock Units. The Grantee’s vested Stock Units shall be paid in Shares
upon the first to occur of (i) a Change of Control that meets the requirements of a “change in
control event” under Section 409A of the Code, (ii) the Grantee’s separation from service without
Cause, or (iii) the date that is five years after the Date of Grant. If a Change of Control occurs
before the Stock Units are fully vested, any Stock Units that subsequently vest shall be paid upon
the first to occur of (i) the Grantee’s separation from service without Cause or (ii) the date that
is five years after the Date of Grant. Notwithstanding the foregoing, all distributions of Shares
under this Agreement upon separation from service shall only be made upon the Grantee’s “separation
from service” within the meaning of Section 409A of the Code and a distribution shall be made at a
time and in a manner consistent with Section 409A. Subject to Section 20, when the vested Stock
Units become payable, the Companies will issue to the Grantee Shares representing the Units
underlying the vested Stock Units, subject to satisfaction of the Grantee’s Tax withholding
obligations as described below, within 30 business days after the payment event.
6. Certain Calls and Puts. The Stock Units granted hereunder and the related Shares
are subject to the call and put rights contained in Section 6 of the Stockholders Agreement, except
that such put rights shall be granted only if and to the extent permitted by the Code (including
Section 409A thereof); provided, however, that the call rights contained in Section 6 of the
Stockholders Agreement shall not apply in the event of a termination resulting from Disability or
death.
7. Share Restrictions, etc. Except as expressly provided herein, the Grantee’s rights
hereunder and with respect to Shares received upon payment in accordance with Section 5 herein are
subject to the restrictions and other provisions contained in the Stockholders Agreement.
8. Distributions, Redemptions, etc.
| (a) | Upon the occurrence of an Adjustment Event, there shall be credited to the Account an amount equal to the product of (i) the per-Share amount paid with respect to Shares underlying the Stock Unit in connection with the Adjustment Event, multiplied by (ii) the number of Shares of the class of stock affected by the Adjustment Event that are included in each Unit immediately prior to the Adjustment Event, multiplied by (iii) the number of Units underlying the Grantee’s Stock Units pursuant to this Award. |
| (b) | If any other cash dividend or distribution is paid with respect to Shares underlying the Stock Units, there shall be credited to the Account an amount equal to the product of (i) the per-Share amount paid with respect to Shares underlying the Stock Units, multiplied by (ii) the number of Shares of the applicable class of stock that are included in each Unit, multiplied by (iii) the number of Units underlying the Grantee’s Stock Units pursuant to this Award. |
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| (c) | The amount credited to the Account pursuant to this Section 8 with respect to Stock Units is referred to as the “Bonus Value.” The Bonus Value shall vest on the same terms as the Stock Units to which it relates, as set forth in this Agreement, and the vested Bonus Value shall be paid to the Grantee at the same time as the vested Stock Units are paid pursuant to Section 5 herein, consistent with Section 409A of the Code. |
| (d) | In the case of a redemption or repurchase of Shares, the number of Shares of the class of stock redeemed or repurchased that are subject to outstanding Stock Units will be automatically reduced by an amount proportionate to the percentage reduction in outstanding Shares of the affected class resulting from the redemption or repurchase. The Grantee shall be entitled to receive any information reasonably requested regarding the composition of a Unit, as adjusted in accordance with this Section 8. |
9. Forfeiture. Upon delivery of Shares pursuant to the Stock Units, the Grantee shall
certify on a form acceptable to the Committee that the Grantee is in compliance with the
Restrictive Covenants and all other agreements between the Grantee and the Company or any of its
Affiliates. If the Company determines that the Grantee is not in compliance with one or more of
the Restrictive Covenants or with the provisions of any agreement between the Grantee and the
Company of any of its Affiliates, and such non-compliance has not been authorized in advance in a
specific written waiver from the Company or the applicable party, the Committee may cancel any
unpaid Stock Units. The Company shall also have the following (and only the following) additional
remedies:
| (a) | During the six months after any delivery of Shares pursuant to the Stock Units, such delivery may be rescinded at the Company’s option if the Grantee fails to comply in any material respect with the terms of the Restrictive Covenants or of any other agreement with the Company or any of its Affiliates or if the Grantee breaches any duty to the Company or any of its Affiliates. The Company shall notify the Grantee in writing of any such rescission within one year after such delivery. Within ten days after receiving such a notice from the Company, the Grantee shall remit or deliver to the Company (i) the amount of any gain realized upon the sale of any Shares, (ii) any consideration received upon the exchange of any Shares (or to the extent that such consideration was not received in the form of cash, the cash equivalent thereof valued at the time of the exchange), and (iii) the number of Shares received in connection with the rescinded delivery. |
| (b) | The Company shall have the right to offset, against any Shares and any cash amounts due to the Grantee under or by reason of the Grantee’s holding the Stock Units, any amounts to which the Company is entitled as a result of the Grantee’s violation of the terms of the Restrictive Covenants or of any other agreement with the Company or any of its Affiliates or the Grantee’s breach of any duty to the Company or any of its Affiliates; provided, however, that no offset shall accelerate or defer the distribution date of amounts payable under this Agreement in violation of Section 409A of the Code, and any offset in violation of Section 409A shall be null and void. Accordingly, the Grantee acknowledges that (i) the Company may withhold delivery of Shares, (ii) the Company may place the proceeds of any sale or other disposition of Shares in an escrow account of the Company’s choosing pending resolution of any dispute with the Company, and (iii) the Company has no liability for any attendant market risk caused by any such withholding, or escrow, subject, however, to compliance with the requirements of Section 409A of the Code. |
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The Grantee acknowledges and agrees that the calculation of damages from a breach of any of the
Restrictive Covenants or of any other agreement with the Company or any of its Affiliates or of any
duty to the Company or any of its Affiliates would be difficult to calculate accurately and that
the right to offset or other remedy provided for herein is reasonable and not a penalty. The
Grantee further agrees not to challenge the reasonableness of such provisions even where the
Company rescinds, delays, withholds or escrows Shares or proceeds or uses those Shares or proceeds
as a setoff.
10. Legends, etc. Shares issued upon the lapse of any restrictions on the Stock Units
shall bear such legends as may be required or provided for under the terms of the Stockholders
Agreement.
11. Transfer of Stock Units. The Stock Units may only be transferred by the laws of
descent and distribution, or to a legal representative in the event of the Grantee’s incapacity.
12. Withholding. The payment of the Shares and other amounts in accordance with this
Agreement will give rise to compensation income which may be subject to withholding. The Grantee
expressly acknowledges and agrees that the Grantee’s rights hereunder, including the right to be
issued Shares in accordance with Section 5 herein and cash paid in accordance with Section 8
hereof, are subject to the Grantee promptly paying to the Companies in cash or by Share withholding
as described below (or by such other means as may be acceptable to the Administrator in its
discretion) all Taxes required to be withheld. The Grantee also authorizes the Companies and their
subsidiaries to withhold such amount from any amounts otherwise owed to the Grantee. Unless the
Grantee elects otherwise in a time and manner specified by the Company, any Tax withholding
obligation with respect to the payment of Shares shall be satisfied by having Shares withheld up to
an amount that does not exceed the minimum applicable withholding Tax. In addition, the Companies
may require the Grantee to pay any taxes or other amounts required to be paid by the Companies or
any Affiliate with respect to the grant or vesting of the Stock Units or the payment of the Shares.
Any such taxes or amounts must be paid at such time and in such form as determined by the
Companies.
13. Grant Subject to Plan Provisions. This Award is made pursuant to the Plan, the
terms of which are incorporated herein by reference, and in all respects shall be interpreted in
accordance with the Plan. The Award and payment of the Stock Units are subject to interpretations,
regulations and determinations concerning the Plan established from time to time by the
Administrator in accordance with the provisions of the Plan, including, but not limited to,
provisions pertaining to (i) the registration, qualification or listing of the shares issued under
the Plan, (ii) changes in capitalization and (iii) other requirements of applicable law. The
Administrator shall have the authority to interpret and construe the Stock Units pursuant to the
terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.
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14. Effect on Employment. Neither the grant of the Stock Units, nor the issuance of
Shares or other payments in accordance with this Agreement, shall give the Grantee any right to be
retained in the employ of the Company, Lowerco or any of their Affiliates, affect the right of the
Company, Lowerco or any of their Affiliates to discharge or discipline the Grantee at any time, or
affect any right of the Grantee to terminate his or her Employment at any time, subject to
applicable local law and the terms of any employment agreement.
15. Delay in Payments for Specified Employees. Notwithstanding anything in this
Agreement to the contrary, if the Grantee is a “specified employee” of a publicly traded
corporation under Section 409A of the Code at the time of separation from service and if payment of
any amount under this Agreement is required to be delayed for a period of six months after the
separation from service pursuant to Section 409A of the Code, payment of such amount shall be
delayed as required by Section 409A of the Code, and the accumulated postponed amount shall be paid
in a lump sum payment within 10 days after the end of the six-month period. If the Grantee dies
during the postponement period prior to the payment of postponed amount, the accumulated postponed
amount shall be paid to the personal representative of the Grantee’s estate within 60 days after
the date of the Grantee’s death.
16. Section 409A. It is intended that the Stock Units awarded hereunder shall comply
with the requirements of Section 409A of the Code (and any regulations and guidelines issued
thereunder), and this Agreement shall be interpreted on a basis consistent with such intent.
Payments shall only be made on an event and in a manner permitted by Section 409A of the Code.
Each payment under this Agreement is considered a separate payment for purposes of Section 409A of
the Code. As provided under Section 409A, if calculation of the amount of a payment is not
administratively practicable due to events beyond the control of the Grantee, the payment will be
treated as made upon the date specified hereunder if the payment is made during the first calendar
year in which calculation of the amount of the payment is administratively practicable. This
Agreement may be amended without the consent of the Grantee in any respect deemed by the Committee
to be necessary in order to preserve compliance with Section 409A of the Code.
17. Nature of Grant; No Entitlement; No Claim for Compensation. Grantee, in accepting
the Stock Units, represents and acknowledges that Xxxxxxx’s participation in the Plan is voluntary;
that participation in the Plan is discretionary and does not form any part of Grantee’s contract of
employment, if any, with the Company or any of its subsidiaries; and that Grantee has not been
induced to participate in the Plan by any expectation of employment or continued employment with
the Company or any of its subsidiaries. Xxxxxxx furthermore understands and acknowledges that the
grant of the Stock Units is discretionary and a one-time occurrence, does not constitute any
portion of Grantee’s regular remuneration and is not intended to be taken into account in
calculating service-related benefits, and bears no guarantee or implication that any additional
grant will be made in the future. In consideration of the grant of the Stock Units, no claim or
entitlement to compensation or damages shall arise from forfeiture of the Stock Units or diminution
in value of the Stock Units or any of the Shares issuable under the Stock Units from termination of
Grantee’s employment by the Company or his or her employer, as applicable (and for any reason
whatsoever and whether or not in breach of contract or local labor laws), and Grantee irrevocably
release his or her employer, the Company and its subsidiaries, as applicable, from any such claim
that may arise; if, notwithstanding the foregoing,
any such claim is found by a court of competent jurisdiction to have arisen, then, by signing
this Agreement, Grantee shall be deemed to have irrevocably waived Xxxxxxx’s entitlement to pursue
such claim.
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18. Personal Data. Grantee understands and acknowledges that in order to perform its
obligations under the Plan, the Company and its subsidiaries may process personal data and/or
sensitive personal data relating to Grantee. Such data includes but is not limited to the
information provided in this Agreement and any changes thereto, other personal and financial data
relating to Grantee (including, without limitation, Xxxxxxx’s address and telephone number, date of
birth, social insurance number or other identification number, salary, nationality, job title), and
information about Xxxxxxx’s participation in the Plan and the Shares acquired from time to time
pursuant to the Plan. Grantee, in accepting the Stock Units, gives his or her explicit and
voluntary consent to the Company and its subsidiaries to collect, use and process any such personal
data and/or sensitive personal data (in electronic or other form). Xxxxxxx also hereby gives his
or her explicit and voluntary consent to the Company and its subsidiaries to transfer any such
personal data and/or sensitive personal data (in electronic or other form) outside the country in
which Grantee works or is employed. The legal persons for whom Xxxxxxx’s personal data are
intended include the Company and any of its subsidiaries, any outside plan administrator or service
provider selected by the Company or any of its subsidiaries from time to time, and any other person
that the Administrator may find in its administration of the Plan to be appropriate; such
recipients may be located in countries that have different data privacy laws and protections than
Grantee’s country. Xxxxxxx hereby acknowledges that he or she has been informed of his or her
right of access and correction to his or her personal data by contacting his or her local human
resources representative. Xxxxxxx understands that the transfer of the information described
herein is important to the administration of the Plan and that failure to consent to the
transmission of such information may limit or prohibit his or her participation in the Plan.
19. Governing Law. This Agreement and all claims arising out of or based upon this
Agreement or relating to the subject matter hereof shall be governed by and construed in accordance
with the domestic substantive laws of the State of Delaware without giving effect to any choice or
conflict of laws provision or rule that would cause the application of the domestic substantive
laws of any other jurisdiction.
20. Compliance with Laws and Regulations. The issuance of Shares pursuant to the
vested Stock Units shall be subject to compliance by the Companies and the Grantee with all
applicable requirements of law relating thereto (including, without limitation, foreign securities
and exchange control requirements). The inability of the Companies to lawfully issue Shares or the
inability of the Companies and/or the Grantee to obtain approval from any regulatory body having
authority deemed by the Companies to be necessary to the lawful issuance of any Shares hereby shall
relieve the Companies of any liability with respect to the non-issuance of the Shares.
21. Amendment. In addition to the authority to make adjustments pursuant to Section
7(b) of the Plan, the Administrator may modify the terms of the Award as the Administrator deems
appropriate, in good faith, to take account of a change in circumstances occasioned by a stock
dividend or other similar distribution (whether in the form of stock, other securities or other
property), stock split or combination of shares (including a reverse stock split),
recapitalization, conversion, reorganization, consolidation, split-up, spin-off, combination,
merger, exchange of stock, redemption or repurchase of all or part of the shares of any class
of stock or any change in the capital structure of the Company or an Affiliate or other transaction
or event, including the power to adjust the performance goals that are affected by such a
transaction.
[SIGNATURE PAGE FOLLOWS]
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By acceptance of the Stock Units, the undersigned agrees hereby to become a party to, and be
bound by the terms of, the Stockholders Agreement as a “Manager” as defined therein.
Executed as of the Date of Xxxxx.
| SunGard Capital Corp. and | SUNGARD CAPITAL CORP. | |||||
| SunGard Capital Corp. II | SUNGARD CAPITAL CORP. II | |||||
| By: | ||||||
Grantee
I acknowledge that I have received a copy of this Agreement and certain related information,
and that I have read and understood these documents. I accept and agree to all of the provisions
of this Agreement.
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Schedule A
Vesting Schedule
Vesting Schedule
10% of the Stock Units shall vest on the first anniversary of the Date of Grant (“Initial
Vesting Date”); and
The remaining 90% of the Stock Units shall vest in equal monthly installments over the 48 months
following the Initial Vesting Date starting with the first monthly anniversary of the Initial
Vesting Date.
Exhibit A
Restrictive Covenants
Restrictive Covenants
1. The Grantee will not render services for any organization or engage directly or indirectly
in any business which, in the judgment and sole determination of the Chief Executive Officer of the
Company or another senior officer designated by the Committee, is or becomes competitive with the
Company, or which organization or business, or the rendering of services to such organization or
business, is or becomes otherwise prejudicial to or in conflict with the interests of the Company.
If the Grantee’s employment or other service with the Company has terminated, the judgment of the
Chief Executive Officer or other designated officer will be based on the Grantee’s position and
responsibilities while employed by the Company, the Grantee’s post-employment responsibilities and
position with the other organization or business, the extent of past, current and potential
competition or conflict between the Company and the other organization or business, the effect on
the Company’s customers, suppliers, employees and competitors of the Xxxxxxx’s assuming the
post-employment position and such other considerations as are deemed relevant given the applicable
facts and circumstances.
2. The Grantee will not disclose to anyone outside the Company, or use other than in the
Company’s business, any confidential or proprietary information or material relating to the
business of the Company, acquired by the Grantee either during or after employment with the
Company. The Grantee understands that the Company’s proprietary and confidential information
includes, by way of example: (a) the identity of customers and prospects, their specific
requirements, and the names, addresses and telephone numbers of individual contacts; (b) prices,
renewal dates and other detailed terms of customer and supplier contracts and proposals; (c)
pricing policies, information about costs, profits and sales, methods of delivering software and
services, marketing and sales strategies, and software and service development strategies; (d)
source code, object code, specifications, user manuals, technical manuals and other documentation
for software products; (e) screen designs, report designs and other designs, concepts and visual
expressions for software products; (f) employment and payroll records; (g) forecasts, budgets,
acquisition models and other non-public financial information; and (h) expansion plans, business or
development plans, management policies, information about possible acquisitions or divestitures,
potential new products, markets or market extensions, and other business and acquisition strategies
and policies.
3. The Grantee will promptly communicate to the Company, in writing, all marketing strategies,
product ideas, software designs and concepts, software enhancement and improvement ideas, and other
ideas and inventions (collectively, “works and ideas”) pertaining to the Company’s business,
whether or not patentable or copyrightable, that are made, written, developed, or conceived by the
Grantee, alone or with others, at any time (during or after business hours) while the Grantee is
employed by the Company or during the three months after the Grantee’s employment terminates. The
Grantee understands that all of those works and ideas will be the Company’s exclusive property, and
by accepting the Stock Units the Grantee assigns and agrees to assign all the Grantee’s right,
title and interest in those works and ideas to the Company. The Grantee will sign all documents
which the Company deems necessary to confirm its ownership of those works and ideas, and the
Grantee will cooperate fully with the Company to allow the Company to take full advantage of those
works and ideas, including the securing of patent and/or copyright protection and/or other similar
rights in the United States and in foreign countries.
4. The Grantee will not solicit or contact at any time, directly or through others, for the
purpose or with the effect of competing or interfering with or harming any part of the Company’s
business: (a) any customer or acquisition target under contract with the Company at any time
during the last two years of the Grantee’s employment with the Company; (b) any prospective
customer or acquisition target that received or requested a proposal, offer or letter of intent
from the Company at any time during the last two years of the Grantee’s employment with the
Company; (c) any affiliate of any such customer or prospect; (d) any of the individual contacts
established by the Company or the Grantee
or others at the Company during the period of the Grantee’s employment with the Company; or
(e) any individual who is an employee or independent contractor of the Company at the time of the
solicitation or contact or who has been an employee or independent contractor within three months
before such solicitation or contact.
